a. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record the reduction of the inventory to market value using the loss-allowance method. b. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record the reduction of the inventory to market value using the cost of goods sold-inventory method.
a. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record the reduction of the inventory to market value using the loss-allowance method. b. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record the reduction of the inventory to market value using the cost of goods sold-inventory method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 15P: (Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and...
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![6. Plain Company began the operation in 2020. Information about the ending inventories of the
Plain Company is shown below:
K
Year
2020
2021
2022
Cost
$20,000
30,000
40,000
Designated.
Market.
Value
$22,000
25,000
37,800
a. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record
the reduction of the inventory to market value using the loss-allowance method.
b. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record
the reduction of the inventory to market value using the cost of goods sold-inventory method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7de09231-5e97-42a8-ba71-880a2d030f0f%2Fad2c26b7-69fd-448f-88c1-cf2d965fdcbf%2Fv61gov_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. Plain Company began the operation in 2020. Information about the ending inventories of the
Plain Company is shown below:
K
Year
2020
2021
2022
Cost
$20,000
30,000
40,000
Designated.
Market.
Value
$22,000
25,000
37,800
a. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record
the reduction of the inventory to market value using the loss-allowance method.
b. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record
the reduction of the inventory to market value using the cost of goods sold-inventory method.
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